Line Structure: A Simple and Traditional Organizational Model

The line structure is the most basic and traditional form of organization, where authority flows vertically from the top executive to the lowest subordinate in the organization. In this structure, managers have direct authority over their subordinates through a chain of command, with authority flowing directly from top to bottom through various managerial positions. Line authority is the only form of authority that exists in this structure, referring to the direct authority of a manager over their subordinates. This structure clearly establishes the authority-responsibility relationship, with all managers having full authority to make decisions and act within their related functions. Departments are created for basic activities, with departmental heads responsible for all activities performed within their department.

At Shangri-la Hotel, the kitchen staff can only use ingredients that have been approved and signed by Craig and Saskia. They are not allowed to cook anything without these signed ingredients, and must seek permission from Craig if they have any suggestions. This structure clearly follows the line structure, where authority flows from the top to the bottom and managers have direct authority over their subordinates.